Compared to an initial long-run equilibrium,an aggregate supply shock that reduces potential output results in a(n)_________ gap in the short run,and _________ output and _________ inflation in the long run.
A) expansionary;lower;lower
B) expansionary;lower;higher
C) expansionary;higher;higher
D) recessionary;potential;higher
E) recessionary;lower;higher

Question

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The Answer of Compared to an initial long-run equilibrium,an aggregate supply shock that reduces potential output results in a(n)_________ gap in the short run,and _________ output and _________ inflation in the long run.
A) expansionary;lower;lower
B) expansionary;lower;higher
C) expansionary;higher;higher
D) recessionary;potential;higher
E) recessionary;lower;higher

Compared to an Initial Long-Run Equilibrium,an Aggregate Supply Shock That